KUALA LUMPUR (Aug 26): Based on corporate announcements and news flow today, companies that will be in focus tomorrow may include AirAsia X Bhd, AMMB Holdings Bhd, Malaysia Building Society Bhd, QL Resources Bhd, Sime Darby Property Bhd, UOA Development Bhd, Matrix Concepts Holdings Bhd, 7-Eleven Malaysia Holdings Bhd, Power Root Bhd, Padini Holdings Bhd, Petron Malaysia Refining & Marketing Bhd, IJM Corp Bhd, Magnum Bhd, Hong Leong Industries Bhd, GHL Systems Bhd, Green Packet Bhd, Genting Plantations Bhd, TH Plantations Bhd, Khee San Bhd, Dagang NeXchange Bhd, TSH Resources Bhd, Berjaya Corp Bhd.
AirAsia X Bhd's (AAX) net loss for the second quarter of financial year 2020 (2QFY20) ended June 30, 2020 widened to RM305.24 million, 47.4% more than the RM207.11 million it recorded a year ago as the airline bore the full brunt of travel restrictions implemented to curb the Covid-19 pandemic. However, the quarter's performance was an improvement over the preceding quarter when the long-haul low-cost carrier posted its largest-ever net loss of RM549.7 million due to large foreign exchange losses and losses from the hedges against higher crude oil prices. Quarterly revenue shrank to barely RM91.44 million compared with RM1.01 billion reported a year ago as AAX operated only 16 scheduled flights throughout the three months versus 4,824 a year ago.
AMMB Holdings Bhd's first-quarter net profit dropped 6.72% to RM365.17 million from RM391.46 million a year earlier on lower net interest and Islamic banking income amid Covid-19-driven uncertainties. Revenue fell to RM2.21 billion for 1QFY21 ended June 30, 2020 from RM2.39 billion a year earlier. In quarterly terms, AMMB said 1QFY21 net profit, however, rose from RM247.54 million in 4QFY20.
Malaysia Building Society Bhd (MBSB) continued to remain in the red, registering a net loss of RM12.51 million for 2QFY20 ended June 30, 2020. This was in contrast with its net profit of RM106 million for 2QFY19. MBSB fell into the red in 1QFY20 with a net loss of RM73.25 million, compared with a net profit of RM83.8 million a year earlier, due to high allowance for impairment charges on loans, financing and advances. Revenue stood at RM886.35 million for 2QFY20, growth of 17.03% year-on-year from RM757.36 million.
QL Resources Bhd's net profit for 1QFY21 ended June 30, 2020 saw a marginal increase to RM50.87 million from RM50.55 million a year ago, despite a 2.3% slip in revenue, as its performance was largely lifted by its improved marine product manufacturing and palm oil activities (POA) segments. Quarterly revenue slid to RM970.15 million from RM993.21 million previously, as it recorded lower revenues from both its integrated livestock farming and POA segments.
Sime Darby Property Bhd posted second-quarter net loss of RM81.77 million versus a net profit a year earlier and in the preceding quarter as all three business segments of the company registered losses due to the disruption caused by the Covid-19 pandemic.
UOA Development Bhd's net profit fell 81.5% to RM23.18 million for 2QFY20 ended June 30, 2020 compared with RM125.09 million a year ago as it was affected by the Movement Control Order (MCO). On a quarterly basis, net profit also fell by a similar percentage from RM124.22 million in 1QFY20. Revenue dropped 62% to RM140.88 million from RM375.27 million in 1QFY20, while on a year-on-year basis it fell 59%. UOA attributed the lower revenue largely to lower progressive recognition in the current quarter due to the Covid-19 pandemic that halted the construction progress during the MCO and Conditional Movement Control Order period.
Property developer Matrix Concepts Holdings Bhd recorded higher sales for its 1QFY21 ended June 30, 2020, jumping 9.3% to RM350.3 million from RM320.4 million in 1QFY20, despite the challenging market conditions due to the MCO. For 1QFY21, its revenue stood at RM162 million compared with RM248.5 million a year ago, while its net profit was RM31.1 million versus RM54.5 million in the previous financial year. Meanwhile, it targets to launch RM1 billion worth of properties in FY21.
Hit by the Covid-19 and the MCO, 7-Eleven Malaysia Holdings Bhd has reported its weakest-ever quarterly net profit since listing. Net profit fell 90.92% to RM1.03 million for 2QFY20 ended June 30, 2020 from RM11.37 million in 1QFY20, despite the incorporation of the profit of the group's newly acquired pharmaceutical unit, Caring Pharmacy Group Bhd. Revenue rose 4.6% to RM649.73 million, from RM619.29 million in 1QFY20. However, the top-line performance of the convenience-store segment itself retreated 17.53% to RM510.63 million, from RM619.24 million.
Power Root Bhd's net profit fell 15.32% to RM10.73 million for 1QFY21 ended June 30, 2020, from RM12.67 million in the preceding quarter, due to lower local sales, coupled with impairment of trade debts, bad debts written off and impairment loss on property, plant and equipment. The lower sales resulted in revenue falling 7.17% to RM83.92 million, from RM90.4 million in 4QFY20.
Fashion retailer Padini Holdings Bhd slipped into the red in 4QFY20 ended June 30, 2020, posting a net loss of RM16.84 million versus a net profit of RM16.62 million in the preceding quarter. This is the first time Padini registered a loss-making quarter since 2004, when it reported a net loss of RM2.3 million for 4QFY04. Quarterly revenue halved to RM174.2 million from RM347.32 million in 3QFY20.
Petron Malaysia Refining & Marketing Bhd narrowed its net loss to RM69.29 million for 2QFY20 ended June 30, 2020, from RM83.68 million for the immediate preceding quarter. This was despite revenue falling 54.28% to RM1.02 billion from RM2.24 billion in 1QFY20.
IJM Corp Bhd's net profit for 1QFY21 ended June 30, 2020 came in at RM1.27 million, lower than the RM71.3 million reported in the preceding quarter and RM59.42 million a year ago, as the group was impacted by the MCO. Revenue was down 57% to RM879.8 million compared with RM2.05 billion for 4QFY20, and down 43% compared with RM1.54 billion for 1QFY20, as contributions fell across the group's construction, property and infrastructure divisions.
Number forecast operator Magnum Bhd sank into the red with a net loss of RM23.67 million for 2QFY20 ended June 30, 2020, as the full impact of the MCO implemented to curb the coronavirus outbreak hit its business. In contrast, it recorded a net profit of RM55.59 million for 1QFY20, and a net profit of RM74.42 million for 2QFY19. Revenue fell to RM50.55 million in 2QFY20, 91.7% less than the RM609.54 million posted for 1QFY20, and down 92.4% from the RM666.4 million recorded for 2QFY19. Notwithstanding the fall to losses, the group declared a second interim dividend via the distribution of about 14.23 million treasury shares, on the basis of one treasury share for every 100 existing shares held, in respect of FY20.
Hong Leong Industries Bhd swung to a loss in 4QFY20 ended June 30, 2020 due to lower sales across all product segments, which were impacted by the MCO. The group reported a net loss of RM29.57 million or 9.41 sen loss per share for the quarter, against a net profit of RM79.9 million or earnings per share of 25.45 sen for 4QFY19.
After a weak first quarter, payment service provider GHL Systems Bhd posted a net loss of RM5.91 million or 0.8 sen per share for 2QFY20 ended June 30, 2020 due to lower transactions recorded, coupled with higher administration and operating expenses. It stated that it booked two non-cash expenses, namely RM2.3 million fair value loss on acquisition of Paysys (M) Sdn Bhd and a write-off for its Cambodian investment of RM11.9 million. "Excluding these two items, the group would have remained profitable in 2QFY20," it said.
International technology, media, and telecommunications player Green Packet Bhd saw its net loss narrow to RM11.98 million for 2QFY20 ended June 30, 2020, from RM34.07 million in the previous quarter, thanks to smaller net loss to fair value gain from a quoted investment of RM9 million, versus a fair value loss of RM17.25 million in 1QFY20. Quarterly revenue was also 1.41% lower quarter-on-quarter at RM144.99 million from RM147.05 million in 1QFY20.
Genting Plantations Bhd's net profit grew 9.13% to RM22.64 million for 2QFY20 ended June 30, 2020 from RM20.74 million a year ago, on higher palm product selling prices despite lower fresh fruit bunches production. Quarterly revenue rose 2.53% to RM544.32 million from RM525.74 million previously.
TH Plantations Bhd has returned to the black, posting a net profit of RM8.16 million for 2QFY20 ended June 30, 2020 due to a better average crude palm oil price. This compares with a net loss of RM11.53 million for the preceding quarter and a net loss of RM19.15 million a year ago. The group posted a revenue of RM127.57 million for the quarter, up 10.4% from RM115.55 million in the preceding quarter. Year-on-year, its revenue grew 20.2% from RM106.11 million in 2QFY19.
Khee San Bhd has filed a writ of summons against United Overseas Bank (Malaysia) Bhd (UOB) over a payment default allegedly owed by the group's unit Khee San Food Industries Sdn Bhd. The company is also claiming a sum of RM114 million, equivalent to RM1 to every shareholder of Khee San, to be paid by UOB as damages. Furthermore, it is asking for additional damages of RM140 million for damage caused to Khee San in terms of operations and revenue loss including reputational damage to the group and its brands.
Dagang NeXchange Bhd (DNeX) has backtracked from its plan to dispose of its 30% stake in Ping Petroleum Ltd, and instead wants to buy up the remaining 70% stake in the oil and gas (O&G) exploration and production (E&P) outfit via a combination of cash and new DNeX shares. Ping's main business is the 50% joint upstream O&G operating company with Hibiscus Petroleum Bhd, which operates in the Anasuria cluster in the North Sea in the UK. It also has an E&P unit in Malaysia.
TSH Resources Bhd is disposing of its 90% stakes in two Indonesian subsidiaries to Kuala Lumpur Kepong Bhd, realising cash proceeds of RM517.62 million. TSH said in a statement that the money will be used mainly to repay its bank borrowings, which amount to RM513.12 million.
Berjaya Corp Bhd is partnering China Sports Lottery HKJC INFOTECH (Beijing) Co Ltd to explore opportunities to jointly develop a third-party lottery market under a responsible gaming framework. The parties inked a cooperation framework agreement today, which will be for an initial five-year term.
Edited by S Kanagaraju